[Stagg]

REC = Renewable Energy Certificate (Photovoltaic)
STC = Small Scale Technology Certificate (Solar Hot Water)

Each system is deemed to remove a certain amount of tonnes of greenhouse gases over a period of ten years. It gets a little ocmplicated with PV though, because however many tonnes of C02 it rids, that figure is multiplied by 4, and that is your REC value.

Each REC has a dollar value, like shares, and that value will go up and down depending on what the independent REC traders are willing to pay.

For example, a 1.5kW system may qualify for 25 RECs, but you are able to claim 100 RECs instead of just $25 at whatever value they are.

You are able to hold onto your RECs instead of gaining the point of sale rebate, and you can sell your RECs to the highest paying trader. I've never had a customer whose paid full price instead of taking hte rebate though.

How they are created is a tricky one though, because the government doesn't pay for it.

When an organisation wishes to create a landfill, a power plant, remove forestry, or anything anti-green, they must seek approval from government regulators. They then are told how many STC's they have to buy to allow them to complete whichever work they need to.

So for example, if Rio Tinto wants to dig a new hole in Karratha, the plan is presented and the regulator instructs them to purchase 10,000 RECs at current market value.

These 10,000 RECs are then paid to the REC traders, who will pass on the value of the RECs to either the retailer, or the customer.

In my opinion it shows how green the government really is, that for every tonne of greenhouse gases removed by renewable energy, a tonne is created...